SciakyWelderPM-Gilbert_Industrial-JA-FINAL_REDACTED.pdf

Control No: 16-0002

REVISED 10/26/2015

Justification and Approval for Other Than Full and

Open Competition Justification

1. Contracting Activity: Army Contracting Command – Warren (ACC-WRN) (ANAD)

2. Description of Action: This action will result in a new firm fixed price contract with Gilbert Industrial, Inc. (referred to as Gilbert herein), Pepperell, MA 01463 for semi-annual preventive maintenance services for six (6) Sciaky welders. Award is projected for the 1st Quarter, FY16.

FY16 Army Working Capital Funds (AWCF)

3. Description of Supplies/Services: The purpose of this contract will be to utilize semi-annual preventive maintenance services for six (6) Sciaky welders located in building 133 at Anniston Army Depot (referred to as ANAD herein). The Contractor shall provide all supplies, tools, repair parts, and test equipment necessary to service all items previously mentioned. The proposed service contract will include a base year and three (3) option years for a total estimated dollar value of $550,206.00. The estimated dollar value is broken up into four parts.

Base year will cost $132,176 (PM is $109,074.00; Emergency repairs is $22,752.00; Manpower reporting is $350.00), First (1st) option year will cost $136,570 (PM is $112,710.00; Emergency repairs is $23,510.00; Manpower reporting is $350.00), Second (2nd) option year will cost $140,730 (PM is $116,460.00; Emergency repairs is $23,920.00; Manpower reporting is $350.00) and Third (3rd) option year will cost $140,730 (PM is $116,460.00; Emergency repairs is $23,920.00; Manpower reporting is $350.00).

4. Authority Cited: The statutory authority permitting other than full and open competition is 10 U.S.C.2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii)(A) “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” Specifically, FAR 6.302- 1(a) (2)(iii)(A)…services may be deemed to be available only from the original source in the case of follow-on contracts for the continued provision of highly specialized services when it is likely that award to any other source would result in (A) Substantial duplication of cost to the Government that is not expected to be recovered through competition.

5. Reason for Authority Cited: Gilbert has retrofitted all of the welders with another version of welder operation software and also owns the proprietary design of the seam weld heads.

Gilbert is the only known vendor who can supply the original manufactured parts, preventive maintenance, and overhaul of the Sciaky welders. No other company is able to perform services on this proprietary hardware and software nor provide new equipment that will interface to the Gilbert welder operation software. The only alternative to meeting this requirement without sourcing to Gilbert would to be procure new equipment; the cost for six new welding systems would range from $3M to $6M. This estimate was comprised from market research conducted from the following vendors: Automation International, Manufacturing Technology, Production Engineering, H&H Resistance Welders and Standard Resistance Welder Company.

This cost would not be expected to be recovered through competition since this procurement is only for $551K.

6. Efforts to Obtain Competition:

a. Effective Competition: Competition is not being considered for this acquisition due to the reasons in section 5. Gilbert retrofitted all of the welders and is the only known vendor who can supply the original manufactured parts, preventive maintenance, and overhaul of the Sciaky welder system. No other vendor can be considered for this requirement. Market research indicates that no other vendor can perform the support needed and provide the parts needed.

b. Subcontracting Competition: Gilbert is a small business and a subcontracting plan will not be required.

7. Actions to Increase Competition: No action has been taken at this time to increase competition. If repair and replacement costs increase significantly or if Gilbert discontinues support, market research will be conducted for acquisition of a new system or the possibility of retrofitting the existing system.

8. Market Research: As a result of market research including internet surveys and inquiries conducted July 2015 (Google searches and inquiries to the sources listed in section 5), no sources have been found that can provide preventive maintenance services on the proprietary Gilbert hardware and software. Other vendors such as Automation International, Manufacturing Technology, Production Engineering, H&H Resistance Welders and Standard Resistance Welder Company cannot provide the described services given that Gilbert is unwilling to sell or provide the design information on the seam weld heads and shunt configurations to any other company. Gilbert is the only known vendor who can supply the original manufactured parts, preventive maintenance, and overhaul of the Sciaky welders.

9. Interested Sources: To date, no other sources have expressed an interest. The notices required by FAR 5.201 will be published on the Government point of entry, FedBizOpps, and any proposals received will be considered.

10. Other Facts:

a. Procurement history:

(1) The following contract numbers are from previous contracts: W911KF-07-C-0015 Sciaky Welder PM Service Contract (Gilbert Industrial, Inc.; August 10, 2007); W911KF- 13-C-0001 Sciaky Welder PM Service Contract (Gilbert Industrial, Inc.; December 12, 2012)

(2) The competitive status for the contract listed in (1) is other than full and open competition.

(3) The authority previously used for less than full and open competition is the same authority as cited in section 4 of this document: 10 U.S.C.2304(c)(1), as implemented by FAR 6.302-1(a)(2)(iii)(A) “Only One Responsible Source and No Other Supplies or Services Will Satisfy Agency Requirements.” Specifically, FAR 6.302-1(a) (2)(iii)(A).

(4) Paragraph 7, Actions to Increase Competition, J&A #12-0013 dated 2 July 2012, stated: Prior to exercising any option year under this contract, industry surveys will be conducted to determine whether other vendors have been licensed or subcontracted by Gilbert to provide service for all items previously mentioned.

(5) The initial Sciaky welder acquisition contract award was accomplished by full and open competition. Given the specialized nature of the existing system, however, replacement components can only be provided by Gilbert in order for proper operation to continue. Replacing the entire welding system presents a significant cost increase of $3M-$6M.

(6) No unusual patterns are evident from the procurement history.

(7) Basis for procurement through a single source was documented in J&A No. 12-0013 based upon the proprietary nature of the support and parts required. There has been no change since that time.

11. Technical Certification: “I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.”

Name: JOSHUA L. HEBERT Signature: //S// Title: Electronics Engineer, TAAN-EQS Date: 07/21/2015

12. Requirements Certification: I certify that the supporting data under my cognizance which are included in the justification are accurate and complete to the best of my knowledge and belief.

Name: MARK A. JOHNSON Signature: //S// Title: Chief, Engineering and Quality, TAAN-EQS Date: 07/21/2015

13. Fair and Reasonable Cost Determination: “I hereby determine that the anticipated cost for this contract action will be fair and reasonable based on cost analysis and/or price analysis, Independent Government Cost Estimate, previous history, and an audit, if necessary.” Certified cost and pricing data will not be required due to the exception listed in FAR 15.403-1(b)(3).

Name: VALERIE D. BRADFORD Signature: //S// Title: Contracting Officer Date: 07/21/15

14. Contracting Officer Certification: “I certify that this J&A is accurate and complete to the best of my knowledge and belief.”

Name: VALERIE D. BRADFORD Signature: //S// Title: Contracting Officer Date: 07/21/15